Velvet grass (Holcus lanatus L.) has a great potential use for winter pasture in subtropical regions due to its good establishment, persistence, high forage production, cold resistance, palatability and tillering ability. The objective of this work was to estimate genetic variability and heritability of agronomic traits and to identify superior progenies. Sixty half-sib progenies were assessed for natural height at the vegetative stage (NH), plant diameter (diameter), heading date (cycle), final height (after flowering) (FH), and tiller number (tillers). Difference among progenies was observed for all traits. Heritability estimates were 38%, 32%, 92%, 57% and 64% for NH, diameter, cycle, FH and tillers, respectively. The highest genetic gain estimate was 30.77 % for the tiller number. There is genetic variability for all the traits and gains after selection among half-sib progenies can be expected.